📈veDREAM and Staking
veDREAM = Passive Income
Last updated
veDREAM = Passive Income
Last updated
veDREAM (Staked Dream or vote-escrowed DREAM) is a vesting system based on Curve's veCRV mechanism which locks a DREAM LP token for a maximum of 1 year. The veDREAM system is designed to promote long-term stakeholder alignment and facilitate fair revenue sharing of protocol fees generated by the DREAMBYT3 marketplace. When users lock their LP tokens, they receive veDREAM, entitling them to governance rights and protocol fee sharing. A user's veDREAM balance is directly proportional to the amount of DREAM LP tokens locked and the duration of time left in the lock period.
In short, if a user locks 1 DREAM LP for 1 year, they will receive the same amount of “vote power” strength as someone who locks 2 DREAM LP for only .5 year.
veDREAM is the governance unit of DREAMBYT3, used in Snapshot voting to authorize changes to the DAO including the management (adding/removing) of incentive programs, new gauges and funding of service providers.
veDREAM holders will be entitled to all revenue sharing from DREAMBYT3. The handling and amount of protocol fees are subject to change based on the DREAMBYT3 Governance Process.
Additionally, the token supply schedule for DREAM has been defined and is set permanently. A key takeaway for the tokenomic schedule is the total supply of DREAM being capped at 1,000,000,000. There are never going to be more than 1,000,000,000 DREAM tokens - and so over time, each token will grow more valuable as the protocol continues to create useful and revenue generating products and services for its holders and stakers.
There are a few modifications that set veDREAM apart:
Instead of locking pure DREAM, users obtain veDREAM by locking DREAM LP Tokens. This ensures that even if a large portion of DREAM tokens are locked, there is a sustainable form of deep liquidity onchain. By ensuring deep liquidity onchain, this means large participants can feel confident in their ability to enter and exit position in DREAM at any point, allowing them to more effectively manage liquidity related risk.
veDREAM maximum locking period is 1 year, a decrease from veCRV's 4 year period (this 1 year max is the same as veBAL). The minimum locking period is 1 week. What we have observed is that the NFT and DeFi ecosystem moves extremely fast, and in the event governance decides to implement a new voting system, this shorter duration of max lock (1-year) compared to veCRV's max lock (4-years) creates a much shorter, but still sufficiently long, waiting period to transition.
veDREAM (Staked DREAM or vote-escrowed DREAM) is the value accrual and governance unit developed and deployed for the benefit of the long-term stakeholders of the DREAMBYT3 protocol. The veDREAM staking mechanism is one of the most distinctive value propositions of DREAMBYT3, and a new form of value creation for NFT ecosystem participants offered by DREAMBYT3. This makes DREAMBYT3 standout in a big way from the current primary competition such as Blur and OpenSea. Enabling revenue sharing means that not just DREAMBYT3 benefits from a flourishing NFT marketplace, but that all $DREAM stakers, in addition to the protocol, benefit. It's a win-win scenario for the NFT ecosystem which forms the foundation of an ideal environment for a "flywheel" effect to form in the non-fungible space, where positive momentum is continually reinforced. This, in turn, allows for the DREAMBYT3 protocol to consistently win market share from the competition - and equally as important: keep it - thanks to the alignment of incentives due to stakers being committed to the long-term success of the protocol.
In its tangible form, the revenue sharing component of DREAMBYT3 takes the form of a set of smart contracts that live onchain as a staking contract (for staking/unstaking/increasing locked time) where veDREAM is issued to users who stake their DREAM LP tokens into the staking contract, and an additional contract for veDREAM holders to make their weekly claims from. The other contract is the FeeDistributor contract, AKA the Revenue Sharing Vault. This contract is where users will be able to claim their weekly share of protocol fees generated, in $WETH, on a weekly basis every Thursday at 00:00 UTC. 50% of all trading fees generated on the DREAMBYT3 marketplace will be sent to the Revenue Sharing Vault each week.
veDREAM is received by a user as a receipt token, much like veCRV and veBAL are received from the Curve and Balancer staking programs when users lock their tokens/LP tokens into those specific staking contracts, respectively.
